Property hotspots currently outperforming London
London’s property market is notoriously strong – with the English capital’s appeal as a centre for business and culture attracting investors from inside and outside the UK. The demand for property saw prices more than double in the ten-year period from 2005 to 2015, proving that this ‘alpha city’ could withstand much of the impact of the recession.
Yet this isn’t the only top performing property hotspot on the planet – and when it comes to international competition some cities are even able to outperform London. Here’s our guide to where they are and what is fuelling their growth…
Space is at a premium in Hong Kong and, therefore, so is the price commanded by a property. Hong Kong is two thirds the size of London and has already reached to the skies to make the most of its land – with more than 1,200 skyscrapers and 36 of the world’s top 100 tallest buildings. Its flourishing business sector – and excellent reputation for education – means that demand for property is unlikely to dry up.
Since 2008, property prices on Hong Kong Island have shot up 80 per cent. Places such as Sai Kung and Clearwater Bay – “new territories” – feature beautiful beaches and picturesque hiking. Prices will almost certainly pick up there as growth continues.
The Burj Khalifa – the world’s tallest building – is a symbol of Dubai’s lofty ambitions and, with the 2020 World Expo now on the horizon, its position as an international property hotspot looks secure. New developments such as the City of Aladdin, tram network and Mall of the World look set to add yet more star power to this city – and top quality property is springing up around these developments to add further fuel to the growth.
If London’s post-2005 growth was impressive, consider the fact that Singapore’s properties shot up by 232% during the same period. Low interest rates, a lack of capital gains tax and the existence of top quality properties have made this a target for overseas investors. Homes close to the hugely popular Orchard Road shops are decked out with designer fittings, top-of-the-range technology and stunning sky gardens.
When it comes to the best performing city in the world economically, London finished a “mere” 26th in a study by Brookings Institution and JP Morgan Chase. Top of the list was Macau, an administrative region in China (like Hong Kong) that has forged a formidable reputation for gambling including the world’s largest casino. GDP growth was 8% while employment shot up 4.2% – well above 2.5% and 3.6% respectively for London. Macau, unlike others in the list, is not reliant on oil so should continue to perform strongly. Property is, inevitably, strong where the economy is strong.
The Big Apple continues to attract big interest. With tourist “star” appeal to match London, New York is also now benefitting from a more upbeat property market, having recovered from the economic crisis. In 2014 the average price of a Manhattan luxury apartment topped $1.7m, a figure that would have been higher than the maximum you would have paid in 2008. The buoyant picture has been helped by the delivery of the sort of quality property that the crisis had stalled.
The editorial unit